30-Year Mortgage Rate Climbs to 7.28%

The typical 30-year fixed mortgage averaged 7.28% during the week through Oct. 1, according to Freddie Mac. It stood at 7.03% one week earlier and 6.34% a year ago. The 25-basis-point increase brought the rate to its highest point since late Nov. 2023. Compared with last year, the higher rate adds more than $100 to monthly principal and interest on a median-priced home.

A broad bond selloff drove the increase. The 10-year Treasury yield, a key influence on mortgage pricing, reached 5.34%. Higher oil costs, inflation concerns and worries about expanding federal deficits contributed to the bond-market pressure. Meanwhile, annual core PCE inflation eased from 3.3% to 3%, remaining above the Federal Reserve’s 2% goal.

The higher financing costs are weighing on home purchases even as sellers make more concessions. In September, price reductions appeared on 20.8% of listings, the largest proportion in four years. Available inventory was 9.1% shy of its pre-pandemic level, giving shoppers more choices. Still, pending sales recorded their weakest year-over-year comparison in eight months, showing that affordability remains a major constraint.